The consensus of Property professional opinion relating to Malaysia appears to have been epitomized by CapitaLand’s devotion to the property market as it joined forces with Malaysia’s top lender Mabank in the end of 2006 and organized one of the biggest closed end private equity funds. The fund is currently investing in property in Malaysia and is dedicated to the market for the medium term. CapitaLand is one of the largest property firms in Asia and their view of property from Malaysia as an investment product is positive. In the words of one of the corporation’s leading executives, Malaysia’s property business has tremendous growth potential. There is only one Issue overshadowing that and the industry is one of short term oversupply in the face of need that is restricted.
However there are ways for an investor to overcome this in 2007 by targeting their attention on residential stock. There are cited as worthy and they are Sunrise Berthed, YNH Property Berthed, IGB Corp Berthed and Plenitude Berthed. Driving industry Confidence in the property market in Malaysia moving into 2007 was the announcement back in April 2006 of the Malaysian government’s blueprint for economic growth and diversification for 2006 – 2010; the government’s ninth Malaysia Plan as it is called, has remarkable provisions for infrastructure improvement and overall economic growth that analysts believe will positively and directly impact the housing market throughout the nation. Another particularly Element in property in Malaysia’s favor is the currency the ringgit is value . . . it is so far below the euro, dollar and British pound that overseas investors buying in Malaysia can become a lot more for their money.
Add to this the fact that property per square meter or foot in all significant Malaysian cities and cities is a fraction of the expense of similar property in the likes of London and New York and yet demand for property is high from an affluent expatriate market in addition to a growing Japanese, Indian and Singaporean market and you have so many fundamentals in favor of Malaysia for 2007 market entrance. And finally, buying land in Malaysia is how investors looking for a shelter from direct market exposure have real estate investment trusts, and the likes of CapitaLand’s equity capital to pick from which normally invest in a diversified portfolio of commercial, residential and mixed use developments to disperse an investor’s risk.